We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Technical Efficiency of China's Banking Industry - Literature review Example

Comments (0)
Summary
Technical Efficiency of China’s Banking Industry: Comparison of State-owned Banks and Joint-stock Commercial Banks using a Stochastic Frontier Approach Institution Date Table of Contents 2.0 Literature Review 2 2.1Introduction 2 2.2Overview of China’s Banking Industry 2 2.3Description of Efficiency Theories 5 2.3.1Economic Efficiency 5 2.3.2Technical Efficiency 7 2.3.2.1Principal Agent Theory of Efficiency 7 2.3.2.2Definitions and Measures of Technical Efficiency 8 2.3.2.3Parametric Methods of Measurement 8 2.3.2.3.1Stochastic Frontier Approach (SFA) 9 2.3.2.3.1.1Overview of SFA 9 2.3.2.3.1.2Estimation of Technical Efficiency through SFA 10 2.3.2.4Non Parametric Methods of Mea…
Download full paper
GRAB THE BEST PAPER
Technical Efficiency of Chinas Banking Industry
Read TextPreview

Extract of sample
Technical Efficiency of China's Banking Industry

Download file to see previous pages... Nonetheless, most economies have been able to exhibit resilience and remained stronger. Economic turbulences and dynamisms have affected different industries within various global economies. China’s banking industry has not been spared from such turbulences and dynamisms hence the need to analyze its technical efficiency. The following chapter provides a chronological description and critique of relevant theories in respect to technical efficiency within China’s banking industry. The chronological description and critical review entails empirical papers linked to the concept of the study. Different theories of efficiency with respect to technical efficiency are discussed within this chapter. 2.2 Overview of China’s Banking Industry China has being operating economic and financial system on the basis of social principles until 1978. Amazingly, the People’s Bank of China (PBC) had for a long time been in-charge of issuing currencies as well as being the financial hub of all the economic plans of China. After 1978, China realized the need for serious economic and financial reforms. The objective of such reforms was to increase economic and technical efficiency of financial and economic sectors within the country (Jiang, 2001). Jiang (2001) adds that China aimed at enhancing resource allocation through such reforms. Albeit gradual, serious reforms were carried out in major sectors of the economy, banking being the main recipient (Adams, Berger, & Sickles, 1999). China decided effect the reforms in two main stages; from 1979 to 1992 and from 1993 to the present time. The first stage was characterized by development of two tier banking systems; People’s Bank of China (Central Bank) and four state-owned banks that included Bank of China (BOC), China Construction Bank (CCB), Agricultural Bank of China (ABC), and Commercial Bank of China (CBC). Despite high degrees of functional segmentations, these banks were permitted to accept deposits and offer credit facilities to households and corporate organizations by 1985 (China Daily, 2006). The first stage formed the basis of further reforms, which was characterized with development of small and medium sized commercial banks. The main reason for allowing entrance of commercial banks within Chinese banking system was to enhance competition, which was aimed at providing high quality and differentiated services and products (Jiang, 2001). Examples of small and medium commercial banks created during this period included CITI Industrial Bank, Guangdong Development Banks (GDB), China Merchants Bank (CMB), Hua Xia Bank (HXB), and China Everbright Bank (CEB) (China Daily, 2006). Notably, most of these commercial banks were joint-stock owned unlike the previously mentioned state-owned. The second stage, which was flagged off by State Council in 1993 saw various decisions made within the financial system reforms (Leigh and Podpiera, 2006). In this stage, the main aim was to enhance c ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Equilibrium and competition in the banking sector
Topic: Equilibrium and competition in the banking sector LITERATURE REVIEW Introduction Equilibrium and competition in the banking sector has been analysed through various general equilibrium banking models along with the role of mediation technology. Banking competition plays a critical part in the equilibrium level in various monopolistic, perfect and conditions of imperfect competition, as depending on the mediation technologies.
14 Pages(3500 words)Literature review
American Banking Industry
The industry of banking which is among the oldest industry in the world serves a very functional role to each and every one among the Americans in both the individual and the institutional level. Nonetheless, despite whatever purpose it serves to the Americans, the banking industry is not free from any issue.
18 Pages(4500 words)Research Paper
An investigation on consumer perception and trust in e-banking transactions through mobile phone.The case of Lloyds TSB
ferences and Subjective Norms 16 2.3.11 Belief of Image 17 2.3.12 Awareness of Mobile Banking Products and Services 18 2.4 Conclusion 19 References 20 Chapter 2: Literature Review 2.1 Introduction E-banking is the word, frequently used in new the generation banking system.
16 Pages(4000 words)Literature review
Does the efficient market theory apply on the forex market Fundamental analysis Vs. Technical analysis
Any international trade will involve in any two instantaneous transactions: Exchange of the products in a physical form Sale or purchase of foreign currency In any international trade, the sale or purchase of any product will affect only one the parties in the foreign exchange.
16 Pages(4000 words)Literature review
Investigation in Cybercrime (Banking Sector)
Although cyber crimes pose threat to every individual, however the banking sector is at great threat from these crimes. The banks serve as ideal spot where deposits and assets of many people are collected, these are the soft targets because the criminals do not have to go on the spot and steal the valuables, rather simple use of internet and data base tracking system can help them get to their objectives.
8 Pages(2000 words)Literature review
Testing Weak-Form Efficiency of Chinese Stock Market
However, the popular finding is that there is still some degree of inconclusiveness with the kind and amount of results exhausted by previous studies. Mama (2010, pp.98), for example, explained that such inconclusiveness may be caused by some failure in methodological strategies used.
5 Pages(1250 words)Literature review
U.S Banking Industry
This work, U.S Banking Industry, focuses on some of economical and political effects on the banking industry in the United States and its consequences in China. Banking sector benefits are majorly from the banking charges and the interests earned are repayment of any loans. The industry is enjoying some favorable factors like increases in population.
6 Pages(1500 words)Essay
Financial Performance of Retail Banking in India
It should be noted that American and European continents were the richest regions in this world until a couple of decades before. However, global wealth is currently shifting from these regions to Asian region at present. The rapid economic growth of Asian countries such as India and China, despite of population growth problems, clearly indicates that.
10 Pages(2500 words)Literature review
How does the western model of Internet Banking apply to Russia
Internet transactions are cheap and thus cost effective. Moreover, internet banking is an efficient for different customers. Internet banking allows customers to operate their accounts at their own convenience (Sadiq & Nassar 2008, p. 56). The numerous advantages of internet banking have contributed its increased growth.
10 Pages(2500 words)Literature review
Banking Industry
Therefore, he helped in establishing the bank which opened in Hong Kong in March 1865 and thereafter in Shanghai a month later. Thus began the journey of HSBC. After establishing some more branches in Asian region, looked towards Europe, North America and gradually towards the rest of the world.
4 Pages(1000 words)Research Paper
Let us find you another Literature review on topic Technical Efficiency of China's Banking Industry for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us